Portman racks up 50% lending surge

Monday 29 July 2002 23:00 BST

MORTGAGE lending has surged 50% at Portman Building Society thanks to the booming housing market. The country's fourth largest building society said it lent £1.38bn during the six months to the end of June - a figure that would have been a record for full year-lending in all but two years of its history.

It said it was also winning customers from its rivals. It now has a net market share of 1.95%, three-quarters higher than would be expected for a lender of its size.

Chief executive Robert Sharpe said that despite a predicted calming in the housing market, the society was confident it could repeat the strong growth during the second half, and that total lending for the year would exceed 2001's figure of £2bn.

The savings side of the business also performed well, with savings balances rising by £319m to more than £7bn. The society said its Isas had proved popular, while its relaunched offshore savings business, Portman Channel, had seen balances grow by 74% in the six months to just under £250m.

Sun Bank, the specialist mortgage lender Portman acquired at the end of last year, made a strong contribution to the society's results with first half profits of £6m.

Pre-tax profits for the six months to 30 June were £31.2m, compared with £31.5m the previous year, as it passed on gains to members through higher savings and lower borrowing rates.